Kyle Bass takes stake in 'undervalued' GM

Kyle Bass' Hayman Capital has taken a stake in General Motors, betting that the once bankrupt company is undervalued and poised to take more market share from competitors. The move helped push the giant car manufacturer's stock up Wednesday.

Bass posted his rationale behind the stake on a website called Harvest. He told CNBC he believes the stock is cheap and that lower pension costs since the company emerged from its 2009 bankruptcy made it more attractive. Bass also said GM's Suburban lines shows growth potential.

Bass told CNBC the ongoing draw-down of government influence in the company will help make it more competitive and free up cash for dividends and stock buy-backs.

—Reported by CNBC's David Faber and written by Jeff Morganteen. Follow Faber on Twitter @davidfaber and Morganteen @jmorganteen.